HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--July 21, 2025-- 

Karman Space & Defense $(KRMN)$ ("Karman," the "Company," "we" or "us"), a leader in the rapid design, development and production of critical, next-generation system solutions for launch vehicle, satellite, spacecraft, missile defense, hypersonic and UAS customers, today released preliminary second quarter fiscal year 2025 financial results in connection with an underwritten public offering (the "Offering") of 20,000,000 shares of its common stock being offered by certain selling stockholders. The selling stockholders expect to grant the underwriters a 30-day option to purchase up to an additional 3,000,000 shares of common stock. The Company is not selling any shares of common stock and will not receive any proceeds from the sales of shares in the Offering. The Company also announced it will issue financial results for the Company's second quarter fiscal year 2025 after financial markets close on Thursday, August 7, 2025. Management will host a conference call and live audio webcast to discuss the results at 1:30 p.m. Pacific Time.

Preliminary Second Quarter Fiscal Year 2025 Results (unaudited)

Set forth below are preliminary estimates of selected unaudited financial information and other information for the three months ended June 30, 2025, and actual unaudited financial results for the three months ended June 30, 2024. We have provided ranges of certain preliminary results below because our closing procedures for our fiscal quarter ended June 30, 2025 are not yet complete. These ranges are based on the information available to us as of the date of this press release. Our final results remain subject to customary closing procedures or subsequent events, however we do not expect our final results to materially differ from the preliminary results shown below. These preliminary estimates are forward-looking statements. Our unaudited financial results as of the three months ended June 30, 2025 are not yet finalized. During the course of the preparation of our unaudited financial statements and the notes thereto by management, additional items that require adjustments to the preliminary results presented below may be identified.

The preliminary results provided below do not represent a comprehensive statement of our financial results and should not be viewed as a substitute for the financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). In addition, the preliminary results for the three months ended June 30, 2025 are not necessarily indicative of the results to be achieved in any future period.

 
                          Three Months Ended June 30, 
                 ---------------------------------------------- 
(In thousands, 
except 
percentages)                   2025                    2024 
                 --------------------------------  ------------ 
                       Low             High 
                   (Estimated)      (Estimated) 
                 ---------------  ---------------   ------- 
Revenue           $  114,500       $  115,000      $ 85,039 
Gross Profit      $   46,700       $   47,000      $ 34,594 
Pretax Income     $    8,310       $    8,400      $  4,916 
Net income        $    6,170       $    6,200      $  4,604 
Funded backlog    $  712,000       $  715,000      $528,008 
Adjusted 
 EBITDA(1)        $   34,850       $   35,150      $ 27,423 
Adjusted EBITDA 
 margin(1)        $     30.4%      $     30.6%     $   32.2% 
 
 
    1.  Adjusted EBITDA and Adjusted EBITDA margin are not calculated in 
        accordance with GAAP. See below for a reconciliation of net income 
        (loss) to Adjusted EBITDA and net income (loss) margin to Adjusted 
        EBITDA margin, the most directly comparable financial measures 
        calculated in accordance with GAAP. 
 

The estimates of Karman's revenue, gross profit, pretax income, net income, funded backlog and adjusted EBITDA, as of June 30, 2025 are preliminary, have not been audited, do not present all information necessary for an understanding of Karman's financial condition as of June 30, 2025, and are subject to change upon completion of Karman's financial statement closing procedures. The preliminary financial data included in the above has been prepared by, and is the responsibility of, Karman's management. Karman's independent registered public accounting firm has not audited, reviewed, examined, compiled, nor applied agreed-upon procedures with respect to the preliminary financial data. Accordingly, Karman's independent registered public accounting firm does not express an opinion or any other form of assurance with respect thereto.

For the three months ended June 30, 2025, we expect revenue to be between $114.50 million and $115.00 million, representing an estimated increase of approximately 34.6% and 35.2%, compared to revenue of $85.04 million for the three months ended June 30, 2024.

For the three months ended June 30, 2025, we expect total gross profit to be between $46.70 million and $47.00 million, compared to total gross profit of $34.59 million for the three months ended June 30, 2024

For the three months ended June 30, 2025, we expect income before provision for income taxes to be between $8.31 million and $8.40 million, compared to income before provision for income taxes of $4.92 million for the three months ended June 30, 2024.

For the three months ended June 30, 2025, we expect net income to be between $6.17 million and $6.20 million, compared to net income of $4.60 million for the three months ended June 30, 2024.

For the three months ended June 30, 2025, net income margin is expected to be 5.4%, compared to net income margin of 5.4% for the three months ended June 30, 2024.

For the three months ended June 30, 2025, we expect funded backlog to be between $712.00 million and $715.00 million, representing an estimated increase of approximately 34.8% and 35.4%, compared to funded backlog of $528.01 million for the three months ended June 30, 2024.

For the three months ended June 30, 2025, Adjusted EBITDA is expected to be between $34.85 million and $35.15 million, compared to Adjusted EBITDA of $27.42 million for the three months ended June 30, 2024. For the three months ended June 30, 2025, Adjusted EBITDA margin is expected to be between 30.4% and 30.6%, compared to Adjusted EBITDA margin of 32.2% for the three months ended June 30, 2024.

The following table reconciles expected net income (loss) to Adjusted EBITDA for the three months ended June 30, 2025, and net income (loss) margin to Adjusted EBITDA margin for the three months ended June 30, 2025, as well as actual financial results derived from our unaudited financial statements for the three months ended June 30, 2024:

 
                                   Three Months Ended June 30, 
                         ----------------------------------------------- 
(in thousands, except 
percentages)                            2025                    2024 
                         ----------------------------------  ----------- 
                               Low               High 
                            (Estimated)       (Estimated) 
                         ----------------  ----------------  ----------- 
Net income                $     6,170       $     6,200      $ 4,604 
Adjustments: 
  Income tax provision          2,140             2,300          311 
  Interest expense, net        11,850            11,900       13,401 
  Depreciation and 
   amortization(a)             10,280            10,350        8,306 
EBITDA                         30,440            30,650       26,622 
Adjustments: 
  Acquisition related 
   expenses(b)                  3,840             3,910           79 
  Integration expenses 
   and non-recurring 
   restructuring 
   costs(c)                       375               380          476 
  Lender and 
   administrative agent 
   fees(d)                        195               210           -- 
  Other non-recurring 
  costs(e)                         --                --           -- 
  Share-based 
   compensation(f)                 --                --          246 
Adjusted EBITDA           $    34,850       $    35,150      $27,423 
Revenues                      114,500           115,000       85,039 
Net income margin                 5.4%              5.4%         5.4% 
Adjusted EBITDA Margin           30.4%             30.6%        32.2% 
 
 
    a   Depreciation and amortization expense includes a range of $2,780 to 
        $2,850, and $1,985 of depreciation and amortization recorded in cost 
        of goods sold for the three months ended June 30, 2025 and June 30, 
        2024, respectively. 
    b   Represents legal and due diligence fees incurred in connection with 
        planned and completed acquisitions, which are required to be expensed 
        as incurred. During the periods presented, these costs were incurred 
        for due diligence and legal fees related to an acquisition of 
        equipment and intangible assets. 
    c   These costs include company-wide system implementation expenses and 
        Company re-branding costs. This category also includes 
        post-acquisition integration costs, and employee expenses related to 
        acquisitions or restructuring activities. 
    d   Reflects non-recurring lender fees associated with one-off amendments 
        to the Company's credit agreement, separate from ongoing 
        administrative fees. 
    e   Other non-recurring costs consisted primarily of non-cash impairment 
        losses during the three months ended June 30, 2024. 
    f   Reflects non-cash share-based compensation expenses associated with 
        the Company's P Units. 
 

Second Quarter Fiscal Year 2025 Earnings Conference Call and Webcast

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July 21, 2025 17:03 ET (21:03 GMT)